The Natural Evolution of Mobile Banking for Consumers
Even though some banks are still catching up with mobile banking to-date, most of banks in Dubai and the rest of the middle-east are barely offering the services that they give already in a branch - not really innovating in this space - they simply add new features to apply for loans, to consume more products, etc...
Worldwide, web-based personal finance management services like Mint.com, Yodlee, Buxster and others have been very successful. Why? Because they tackle a need for consumers to easily manage their personal finances, and easier means less typing and more automation and packaging... Hence they offer integration with your bank accounts, automatically categorize your spending by pre-defined categories or suggested categories, set budget goales, also suggest buddget goals all to optimise your finance using less typing more automation with near real time tracking, notifications and suggestions.
Therefore independent Web-Based is one way to deliver Enhanced and Automated Personal Finance - However, this drives consumers away from Banks to these web-based platforms - Banks won't be very happy with this!
I believe there is a Market Opportunity in building Enhanced and Automated Personal Finance wrapper on Top of an Existing Mobile Banking Platform and selling to Banks as a Natural Evolution to their existing mobile banking platform.
Banks would be interested in a similar platform as it draws backs consumers to them, and this have direct impact on banks consumer business - Head of Retail Banking Would Love it - it boosts Banks' Brand & Reputation, Retention of Consumers Delivering Innovative Mobile Banking, Acquisition of New Consumers, Potential Increase of cards use due to all the automation and reporting they get from that, even more analytics to deliver more tailored and personalized mobile banking services.
We believe the differentiator for this idea though would be in two folds:
1- The ability to connect and aggregate information from multiple bank accounts, if the integrations is done at the level of Banks using existing systems passing through the central bank is a much more secure approach to banks’ ears.
2- The ability to have impeccable analytics and dashboards, and this means ability to map all card transactions to predefined categories; drilling down to one more level, it is to have the ability to get detailed information of item level spending from retailers and automatically categorize based on this. This will require establishing partnership with retailers to share their data and developing algorithms to automatically categorize their items.
There is a great value for Banks to buy something like this; in Enterprise Software market this could be easily priced 500k++ USD Licenses and 100K USD recurring licenses per year - multiply this by number of retail banks who could potentially buy and you have your market size.